Last year, we started the year by suggesting that those looking at the Brazilian sugar market may want to fasten their seat belts because the volatility came back into the market due to a number of factors including elections and fluctuations in the real’s value against the dollar, among others.
If you are in the commodities space right now, you know the pressures facing producers and consumers. From the trade war and African Swine Fever to the decline in protein supplies, trying to manage your risk in the commodities space can feel like a putting together a puzzle with a missing piece.
African Swine Fever (ASF) strikes fear into the hearts of pig producers around the world. Have you thought about ASF? Are you protected?
What is ASF and where is it found?
According to the Food and Agriculture Organization of the United Nations (FAO), ASF is a highly contagious and deadly viral disease that affects domestic and wild pigs of all ages and can spread rapidly.
A snapshot, a photo, a moment in time – when you are managing your risk, being able to test against a moment in time is vital. In this article, we will explore why using stress testing and Value at Risk (VaR) can support your risk management goals.
You wouldn’t use a hammer for a job that requires a screwdriver would you? Think about your risk management in the same way. Modern hedging portfolio trends combine different tools and actions to help manage the risk in a portfolio and protect against unpredictable market scenarios.
Do a check-up on your risk management strategy before harvest.
When I talk about building a diversified hedging portfolio as a business, I often use the analogy of building an investment portfolio as an individual.
With an individual investment portfolio, a mix of different, non-correlated asset classes (i.e.
You have the need for risk management solutions – we have a variety of solutions to meet your needs. It’s a win-win situation!
We work with customers in a variety of ways – taking into account your individual needs and risk management goals.
By: Rob Wolter
Over the last number of years, many executives and managers in the food space have done well by essentially employing a “do nothing” approach when it comes to hedging their price risk in food commodities. They’ve done this by simply keeping an eye on heavy supply forecasts and waiting for deferred prices to drop as consumption months approach.